For years, programs offering Caribbean citizenship by investment have made waves for offering improved travel freedom, financial assurance, and other benefits to investors. But increased visibility brings greater scrutiny, leading to misinformation and myths that can mislead and discourage potential applicants. This article debunks some of those myths and clarifies facts so prospective applicants can make informed decisions.
Myth One: You Can Buy a Passport
One of the most common myths is that Caribbean citizenship programs are just “passport vending machines.” This myth is far from the truth. Citizenship is not “bought” in a simple sense; it’s earned through a structured and transparent process with vigorous due diligence steps. You must make a qualifying contribution, whether it’s a donation to a government fund or purchase approved Caribbean real estate and pass thorough background checks. These checks ensure you meet the requirements set by the respective governments, it’s not as simple as buying a passport.
Myth Two: Fewer Rights than Natural-Born Citizens
Another myth is that successful applicants have limited citizenship rights compared to natural-born citizens.
This is entirely inaccurate, as once citizenship is granted, citizens by investment have the same rights and privileges as natural-born citizens, including the right to vote, hold public office, obtain a Caribbean passport, and live or work in the country without restrictions.
Additionally, CBI applicants can pass down citizenship to future generations, such as a future spouse or child. Countries offering Caribbean citizenship by investment programs uphold the principle of equality for all citizens, regardless of how they acquired their citizenship.
Myth Three: Criminals Can Acquire Citizenship
A topic of discussion among foreign governments has been concerns regarding criminals obtaining citizenship to escape justice or access Caribbean visa free countries for unlawful purposes. In reality, Caribbean CBI programs have some of the world’s most demanding due diligence processes, further reinforced by due diligence standards agreed upon in the Caribbean CBI Memorandum of Understanding.
Applicants undergo multiple layers of background checks by international agencies and local authorities. Anyone with a criminal record, involvement in illegal activities, or connections to terrorism is automatically rejected. Every applicant also undergoes post-citizenship monitoring to ensure their actions align with not only the program’s requirements but also the country’s values.
Caribbean governments hold the authority to revoke citizenship in instances where it has been obtained through fraudulent means, as demonstrated in July 2024 when the Dominica government rescinded 68 passports acquired fraudulently via the country’s citizenship program. Similarly, in November 2024, the St Lucia government revoked the citizenship of an individual convicted of money laundering.
Myth Four: CBI Programs are Intended for Businesspeople
While many business professionals are attracted to the benefits of Caribbean citizenship by investment programs, they are not designed exclusively for them. Individuals from all walks of life apply, including retirees, investors, digital nomads, families, and frequent travelers, as the motivations and advantages of obtaining citizenship in the Caribbean are broad. The programs are open to anyone who meets the financial and character requirements and offer flexibility and accessibility beyond the business world.
Myth Five: You Pay Zero Taxes
St Kitts and Nevis and Antigua and Barbuda’s citizenship by investment programs are popular with many investors because of their tax-friendly rules: No personal income tax, capital gains tax, wealth tax, or inheritance tax. But they are not entirely tax-free. Depending on their activities and assets, residents are still subject to other taxes, such as property tax, stamp duty, and value-added tax (VAT).
Tax-resident status in a Caribbean country that offers citizenship by investment is not a golden ticket to a tax-free life, as it doesn’t eliminate tax obligations to other countries where you hold citizenship or assets. A definitive example is the United States citizenship-based taxation system, which requires American citizens to pay US taxes regardless of where they live or hold tax residency.
Joe Rice, Caribbean investment migration specialist at Global Citizen Solutions, addressed tax misconceptions in recent comments, stating, “There’s no citizenship by investment program with zero taxes. It’s a common misconception. Of course, there are ways of reducing your taxes, becoming a resident of a country with great tax benefits, whether that means renouncing your citizenship of the country you’re from, or becoming a permanent resident in another country.”
Myth Six: You Must Reside in the County
One of the last common myths is that CBI applicants must relocate or live in the country to maintain citizenship and a Caribbean passport. This is not a requirement to obtain citizenship by investment in Dominica, Grenada, St Kitts and Nevis, and St Lucia. While applicants are welcome to live in the country, there are no residency or physical presence requirements to complete the citizenship process or maintain citizenship status after it’s granted.
The due diligence process includes a mandatory Caribbean citizenship interview conducted virtually. The sole residency obligation is Antigua and Barbuda’s stipulation of spending just five days in the country during the first five years after acquiring citizenship.
What Investors Should Know
Second passports from the Caribbean come with a ton of perks like increased mobility, financial opportunities, and personal security. But potential investors must look beyond the myths and understand the reality of these programs. While there is minimal residency and flexible investments, due diligence and compliance with the process is key to a smooth application. Enlisting licensed and reputable Caribbean immigration services is necessary not only as a requirement to start the process but also to ease any concerns and navigate legal complexities.
